Peking, April 28.
A new season of loan rumours has opened. Some days ago there was a vague tale of a Spanish Joan im circulation. Then a report in the 'Financier' (London) of an independent French loan of Frs. 500,000,000 at 8 per cent., of which three-fifths was to be retained in Paris for the purchase of aeronautical supplies, created a little flutter. And now there is a story, with circumstantial details, of a Dutch loan going the rounds in the Legation Quarter. It is impossible to run these to earth, but since no foundation for any of them can be found, it is beginning to be suspected that. they are inspired by Chinese gossip and are perhaps an indirect expression of Chinese hopes. Offieialdom has finally realized that the Consortium is fixed in_ its determination to give the militarists nothing to play with and may, therefore, be making discreet in-it cannot hope for an administrative loan from any of the Powers which are supporting the Consortium, that money might be procured for the development of railways, roads, ports, and the like, but that nothing is likely to be forthcoming for even these purposes, which do not keenly interest the militarists since they would yield no margin of ready cash, so long as the question of the Hukuang bonds is unsettled. After a good deal of vacillating the Government has determined that since a concession in the Hukuang case would not prompt the Powers to make an administrative loan, no concession whatever will be made, and that China will build her own railways, thereby spiting the Con sortium. To this end a special commission has been organized with offices in the Ministry of Communications and has been entrusted with the creation of a definite scheme and policy. "those controlled by! the Consortance in money markets other than One of the first decisions which ium. It is possible also that the this Commission has reached is stories circulated are also design-to complete the Hukuang line, this ed to re-arouse the Consortium's presumably being designed to show interest in the Joan question by the bankers that they are not seeming to be flirting with imagin-needed. The Ministry has agreed ary rivals. to set aside as a special fund The Dutch Joan is strenuously $100,000 a. month from the receipts denied in quarters which should of the northern lines. In another be well informed and it is said month the Peking-Suiyuan _rail-that it would be impossible to way will be completed to Kuei-sell bonds in Amsterdam for any hua cheng and the commission is Kind of an investment in China now negotiating with the Chinese except for some! constructive: en-banking group for a loan of terprise guaranteed to yield its as far as Paotouchen on the Yel-85,000,000 to carry the work on own revenue and independent vot the the credit of the low River. A number of project: Chinese Government. Just as fed branch lines from the various China's refusal to redeem the existing railways have not been German Hukuang bonds which {built because of lack of—funds. are held in America, France, and The Commission proposes to start Great Britain has brought about several of these at once by enteva deadlock in railway negotinimg into negotiations with local tions with the Consortium, so the merchants in the various districts repudiation) of German reorgpniinterested, and by taking them zation loan bonds purchased in into partnership with the Govern-Holland and Luxembourg—before ment the merchants helping in the the war has seriously damaged financing of the lines, and the Gov-Chinese credit among the ernment assisting in. the develop-Amsterdam bankers. Dutch holdment of industries which will ensure ings in the German share of enough freight to make the lines the reorganization is not large.
The value of beads purchas-This activity in the Ministry of ed before the war probably Communications may or may not does not exceed £25,000, while be disconcerting to the bankers, Dutch holdings in the German but from the point of view of the Hukuang bonds perhaps do not Powers friendly to China, who -exceed £2,000, but Chinese deter-saw in the Consortium an' instru-mined repudiation of all interests ment through which China migh: in even these small holdings h: be forced to exist and develop-incensed the thrifty Dutch inves-on her own resources, it is de-tors and they are not likely to cidedly wholesome. The foreign take an interest in financing the investors who bought German Chinese Government for some time Hukuang bonds will presumably "to come. be disappointed if it transpires Caixa Burpine Her Own that China, in an independent and defiant mood, prefers to dispense with Consortium support The Chinese Government real-rather than redeem the bonds; izes that its credit in Occidental but it means that every month Wanking circles is not good, that: $100,000 is going into a produc of cal beebe tothe "Chines People.
Text read from the printed page and cleaned; old type leaves the occasional error.